Banking News

Jio Financial Services launches rental services for laptops, phones, airfiber and other tech devices


Jio Financial Services is introducing Device as a Service (DaaS) as a financing model for corporates. DaaS allows companies to lease devices instead of purchasing them, preserving cash flow and enabling better IT fleet management. The company plans to offer finance and operating leases for assets like airfiber, phones, and laptops, aiming to establish a new market model for consumer devices.

In a presentation to investors, Jio Financial Services, carved out from Mukesh Ambani’s conglomerate Reliance Industries, highlighted the benefits of DaaS, emphasizing lower risk due to asset ownership and the opportunity for sharper targeting for cross-selling based on customer insights. Mukesh Ambani had earlier shared with shareholders that Jio Financial Services (JFS) aims to address a significant gap in the financial services requirements of various sectors in India.

Jio Financial Services future plans

Jio Financial Services is initially concentrating on secured products after Reserve Bank of India (RBI) recently raised risk weights on such loans. “Increased focus on secured lending given current market and regulatory developments,” Jio Financial Services said in the presentation.

The company plans to expand its financial offerings, including home loans and unsecured loans, as part of its pipeline.

Jio Financial Services Q3 results

Jio Financial Services saw a experienced a 56% drop in consolidated profit after tax in the third quarter, leading to a sharp drop in share price. The company has partnered with three more insurers, bringing the total tie-ups to 27 across general and life insurers.The company reported a consolidated net profit of Rs 668 crore in the second quarter and a net profit of Rs 1,294 crore for the nine months ending December. Revenue moderated to Rs 414 crore in the latest quarter.Meanwhile, the joint venture between Jio Financial Services and BlackRock has applied for a mutual fund license with the market regulator, SEBI. As of December 31, 2023, the application is under consideration of the regulator, according to a Sebi update. Jio Financial Services and BlackRock had in July announced an agreement in to form a 50:50 joint venture with a $150 million investment each to enter the asset management business in India.


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